By Sachin Mohan · AIM Media House
Albertsons raised its AI-anchored productivity target from $1.5 billion to $2 billion over the next three years on its Q4 2025 earnings call on April 15, with CEO Susan Morris framing the increase as a direct result of early returns from the grocer's AI deployments.
The announcement marks the first time Albertsons has publicly upgraded the target and signals that its AI programme has moved from investment phase to one generating measurable operational returns. "We just reset our productivity to $2 billion over the next three years," Morris said on the call.
She attributed the confidence behind the upgrade to the performance of what Albertsons calls its four big bets, four AI-driven structural initiatives running across its operations.
The Four Big Bets "Our four big bets, Digital Customer Experience, Merchandising Intelligence, Labor Optimization, and Supply Chain Optimization are not pilot programs. They're all long-term structural initiatives designed to drive growth and expand margins," Morris described.
Each initiative disclosed measurable progress on the call. In Digital Customer Experience, digital penetration surpassed 10% in Q4 for the first time, with digital sales growing 16% in the quarter on a 40% two-year stack.
In Merchandising Intelligence, Albertsons disclosed for the first time that personalized ad pilots delivered a 90% lift in conversion and click-through rates, with Morris describing this as a clear path to scaled personalization.
In Labor Optimization, generative AI scheduling tools are live across operations, improving forecast accuracy and driving labor efficiency.
In Supply Chain, the company's proprietary AI tool Gateway, which launched nationwide in February 2026, is improving inventory efficiency and replenishment for promotional SKUs, with benefits expected to compound through fiscal 2026.
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